MASTER 
NFGATIVE 

NO.  94-82049 


COPYRIGHT  STATEMENT 


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•  *•  Heconmondations  rolativo  to  a  f^onoral  system 
of  accounting  for  tho  city  of  Baltimore.   ^Balti- 
more, Dulany,  1909?3 

48  p.   23  era. 

At  head  of  title:  Mayor  and  city  council. 


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MAYOR  AND  CITY  COUNCIL 


Recommendations 


RELATIVE  TO  A 


General  ^jdcm  of  Accounting 


FOR  THE 


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Prepared  by 

THE  AMERICAN   AUDIT   CO.. 

100  BROADWAY  AND  THE  WALDORF-ASTORIA. 

NEW  YORK  CIT^ 


Columbia  (HnitJem'tp 

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LIBRARY 


School  of  Business 


MAYOR  AND  CITY  COUNCIL 


R  ecommenda  tions 


RELATIVE  TO   A 


General  System  of  Accounting 


FOR  THE 


1 


CITY  OF  BALTIMORE 


I 


Prepared  by 

THE    AMERICAN    AUDIT    CO.. 

100  BROADWAY  AND  THE  WALDORF-ASTORIA. 

NEW  YORK  CITY 


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INDEX 

City  Departments.  page. 

Appeal    Tax    Court ly 

Baltimore   City  Jail 24 

Bay  View  Asylum 26 

Board  of  Estimates  12 

Board  of  Fire  Commissioners   26 

Board  of  Park  Commissioners   27 

Board  of  Police  Commissioners   42 

Board  of  Police  Examiners   42 

Board  of  Public  Improvements  12 

Board  of  School  Commissioners  28 

City  Collector 17 

City  Comptroller  5 

City  Departments,    General   Criticisms  and   Suggestions 14 

City  Engineer 29 

City  Librarian  oq 

City  Register    12 

Collector  of  Water  Rents  and  Licenses 23 

Commissioner  of  Health oj 

Commissioner  of  Street  Cleaning 31 

Commissioners  of  Finance ^2 

Commissioners  for  Opening  Streets 32 

Coroners    ....    ^ 

Courts     ^2 

Department  of  Legislative  Reference 33 

Diary  of   City  Council j2 

Electrical   Commission    ^^ 

Free  Public  Bath  Commission 34 

Harbor  Board   ^c 

House  of  Correction ^ 

Inspector  of  Buildings 3c 

Law  Department  ^7 

Liquor  License  Commission ^2 

Market   ^Master    37 

Mayoralty    33 

Municipal   Telephone   Exchange 12 

Reformatories    j2 

Sewerage  Commission -,q 

Superintendent  of  Lamps  and  Lighting ^g 

Superintendent  of  Public  Buildings ^g 

Supervisors  of  City  Charities .q 

Supervisors  of  Elections ^ 

Tax  Bailiffs   ^^ 

Topographical  Survey .q 

Water  Engineer    .  j. 


i 


I  HIS  pamphlet  contains  the  report  on 
the  accounting  system  of  the  City  of 
Baltimore.  In  addition  to  this,  there  has 
been  filed  with  it  duplicate  reports  in 
detail  of  each  city  department.  The  orig- 
inal copies  have  been  filed  with  the  City 
Librarian  for  further  reference. 


THE  AMERICAN  AUDIT  COMPANY 

100  BROADWAY 

NEW  YORK,  October  26,  1909 

To  the  Honorable  Mayor  and  City  Council 

of  the  City  of  Baltimore,  Maryland. 

Gentlemen  : — 

In  addition  to  our  audit  of  the  books  of  the  various  Depart- 
ments of  the  City  of  Baltimore  for  the  period  from  January 
1st,  1907,  to  June  30th,  1909,  the  results  of  which  we  have 
reported  separately  by  Departments,  we  have  been  requested 
to  make  recommendations  as  to  a  general  accounting  system  for 
your  City. 

In  accepting  this  responsibility,  we  must  consider  to  what 
extent  the  information  needed  by  your  honorable  body  for  a 
wise  and  economical  administration  of  the  City's  Affairs,  may 
be  reflected  in  the  accounts,  and  how  far  the  present  system 
supplies  such  information. 

Your  present  system  is  based,  almost  exclusively,  on  Receipts 
and  Disbursements  of  cash.  This  includes  only  that  part  of 
actual  revenue  and  expenses,  consisting  of  cash  received  and 
disbursed,  and  leaves  out  of  the  accounts  what  revenue  is  due 
to  the  City  at  the  end  of  the  fiscal  year,  and  what  is  due  by  the 
City  for  expenses  incurred  during  that  period. 

The  property  owned  by  the  City  is  not  incorporated  in  its 
accounts  on  the  Comptroller's  books.  In  furnishing  informa- 
tion as  to  what  constitutes  this  property,  the  Comptroller  has 
to  rely  for  a  basis  mainly  upon  a  list  included  in  a  ''Statement 
of  Assets  and  Liabilities"  compiled  by  the  Comptroller  in  1902, 
who  stated  in  his  report  that  it  was  from  "incomplete  depart- 


mental  records."  In  other  words,  the  present  books  of  account 
do  not  record  all  the  property  owned  by  the  City,  and  fail  to 
show  accurately  either  revenue  earned  or  expenses  incurred. 
The  Comptroller  endeavors  to  show  the  liability  for  unpaid 
bills  at  the  end  of  the  fiscal  year;  but  as  they  are  not  charged 
to  the  respective  accounts  for  which  the  debt  was  made,  these 
accounts  do  not  show  whether  the  entire  actual  expenditure  is 
within  the  amount  autliorized  by  appropriation. 

To  meet  these  defects,  the  accounts  should  be  arranged  so 
as  to  show  not  only  the  receipts  and  payments  of  public  moneys 
raised  for  specific  purposes,  but  the  balance  of  cash,  uncollected 
revenue,  and  other  assets  available  to  meet  current  liabilities 
incurred  for  expenses  provided  for  by  appropriations,  and 
whether  the  aggregate  of  paid  and  unpaid  items  of  expense  are 
within  the  amounts  appropriated  for  the  several  purposes,  also 
what  surplus  for  the  year  remains  to  be  deducted  from  the 
ensuing  levy,  or  what  deficit  must  be  provided  for.  They 
should  also  show  the  condition  of  the  Funded  Debt  and  Sinking 
Funds,  all  Assets  and  Liabilities,  and  the  assessed  value  of 
taxable  property.  Taxable  Real  Estate  is  the  main  source  of 
revenue,  measuring  the  limit  to  which  the  City  may  with 
advantage,  both  to  itself  and  the  holders  of  City  Stock,  increase 
the  amount  of  its  Funded  Debt. 


CITY  COMPTROLLER 

The  duties  of  the  Comptroller  should  not  include  the  hand- 
ling of  cash,  as  such  an  arrangement  conflicts  with  the  theory, 
accepted  by  all  leading  financial  and  industrial  institutions,  that 
the  duties  of  Bookkeeper  and  Cashier  should  be  kept  separate. 
Under  the  present  system,  however,  this  Department  handles  a 
considerable  amount  of  cash  in  connection  with  its  duties 
relative  to  Harbor  Master,  Market  Master,  Inspector  of 
Weights  and  Measures,  the  issuance  of  minor  licenses,  and  the 
management  of  certain  City  properties.  Its  present  duties 
require  the  collection  of  money  from  these  several  sources,  the 
recording  of  the  transactions,  and  the  auditing  of  the  records. 


This  condition  should  be  changed,  as  it  is  destructive  of  the 
very  safeguards  which  are  imperative  in  all  properly  regulated 
systems  of  accounts. 

The  discrepancies  occurring  in  this  Department  during  the 
period  covered  by  our  examination,  while  not  large  in  amount, 
were  mainly,  if  not  entirely,  due  to  the  above  mentioned  con- 
ditions. 

We  would  suggest  that  the  Department  of  the  Collector  of 
Water  Rents  and  Licenses  be  designated  to  record  and  collect 
the  items  here  referred  to  as  now  being  handled  by  the  Comp- 
troller's Department,  unless  the  authorities  prefer  some  other 
course.  Whatever  method  may  be  decided  on,  an  immediate 
severance  of  the  conflicting  duties  and  responsibilities  of  the 
Comptroller  should  be  eflFected. 

The  Comptroller's  Office  should  be  shorn  of  all  duties  except 
those  pertaining  to  Comptroller,  Auditor  and  General  Ac- 
countant. 

Appropriate  books  and  blanks  should  be  prepared  for  his 
use  which  will  at  all  times  reflect  the  City's  financial  condition 
based  upon  the  transactions  entered  into  by  and  on  behalf  of 
the  City  through  the  several  Departments  and  subdivisions 
thereof.  These  transactions  should  be  reported  to  him  daily 
by  means  of  blanks,  which  we  have  in  mind  to  prepare,  for  the 
purpose  of  recording  each  specific  transaction,  whether  it  be 
the  receipt  or  payment  of  money,  contracts  awarded  or  com- 
pleted, or  bills  contracted  for  services  or  materials. 

The  Funded  Debt  should  be  entered  in  the  Controlling  Ac- 
counts on  the  General  Ledger  in  the  Comptroller's  Department. 

The  unpaid  bills  at  the  end  of  the  year  should  be  charged 
against  the  accounts  for  which  they  were  incurred,  and  be 
credited  to  Accounts  Payable.  Accrued  Items  should  be  en- 
tered as  at  December  31st,  1909.  The  balances  brought  for- 
ward on  January  ist,  1910,  if  gathered  together,  will  then 
constitute  a  Statement  of  Assets  and  Liabilities. 

The  General  Ledger  will  then  become  the  book  in  which 
control  accounts  over  all  Departments  will  be  kept,  and  will  be 
so  arranged  that  it  will  be  convenient  to  prepare  therefrom  a 
daily  trial  balance  for  such  uses  as  may  be  desired. 


The  details,  underlying  the  general  accounts  here  suggested, 
need  not  be  kept  in  the  Comptroller's  books,  but  should  be  fully 
stated  in  the  records  kept  by  the  Departments,  while  the  gen- 
eral books  in  the  Comptroller's  Office  should  deal  with  total 
results  and  furnish  a  control  over  the  records  of  the  Depart- 
ments. All  the  accounts  should  be  so  arranged  as  to  reflect 
information  which  will  be  available  as  a  basis  for  intelligent 
action  in  making  appropriations  for  administrative  and  other 
purposes,  and  capable  of  analysis  in  such  a  manner  that  an 
accounting  for  fidelity  may  also  become  an  accounting  for 
economy  of  administration. 

This  arrangement  will,  for  the  first  time  in  the  history  of  the 
City,  incorporate  in  its  accounts  all  the  information  usually 
included  in  the  Comptroller's  Reports. 

Copies  of  the  minutes  of  bodies  authorized  to  make  appro- 
priations, and  pass  upon  the  payment  of  money,  should  be  filed 
with  the  Comptroller. 

All  accounts  for  which  appropriations  are  made  should 
include  in  the  caption  of  the  account  the  limit  of  expenditure 
authorized  by  the  appropriation.  All  accounts  for  which  esti- 
mates of  receipts  have  been  made  should  include  the  amount  of 
such  estimate  in  the  caption.  The  General  Revenue  Account 
should  include  in  its  caption  on  the  debit  side  the  amount  rep- 
resenting the  aggregate  of  all  appropriations,  and  on  the  credit 
side  the  total  of  the  amounts  estimated  to  be  received.  This 
would  result  in  establishing  the  equilibrium  of  these  debit  and 
credit  memoranda. 

We  advise  that  the  present  use  of  Receiving  Warrants  in  the 
Comptroller's  Office  be  dispensed  with,  except  in  the  case  of 
Revenue  from  the  Departments  controlled  by  the  State,  as  a 
check  on  all  other  funds  received  by  the  City  Register  will  be 
effected  in  a  different  manner. 

The  Auditors  in  the  Comptroller's  Office  should  visit  every 
Department  and  subdivision  thereof  at  frequent  intervals,  make 
a  complete  check  of  the  details,  and  verify  all  daily  statements 
rendered  to  the  Comptroller's  Department.  The  more  fre- 
quently these  examinations  are  made  by  the  Internal  Auditors, 
the  better  will  the  City's  interests  be  safeguarded.     Such  a  plan, 

8 


if  properly  carried  out,  will  keep  the  Comptroller  fully  informed 
as  to  general  conditions  in  each  of  the  several  Departments. 
The  use  of  blanks  for  the  purpose  of  reporting  changes  in  the 
accounts  in  the  Departments  will  make  unnecessary  the  present 
plan  of  checking  up  the  items  with  the  Department  each  month, 
as  these  daily  reports  can  be  so  filed  as  to  form  a  book  of 
original  entry  for  the  Comptroller's  Department. 

Accountants,  not  connected  with  the  Comptroller's  Depart- 
ment, could  be  engaged  to  advantage  for  the  purpose  of  install- 
ing a  system  of  accounts,  in  line  with  the  suggestions  made 
herein,  and  supervising  same  for  a  period  of  time  sufficient  to 
insure'  its  satisfactory  operation.  These  Accountants  should 
also  audit  the  records  of  the  Comptroller,  report  from  time  to 
time  that  the  system  as  installed  is  being  efficiently  operated, 
and  make  such  recommendations  as  will  tend  to  increase  its 
efficiency  and  adapt  it  to  possible  changed  conditions. 

In  order  that  the  City  property,  both  real  and  movable,  may 
be  incorporated  in  the  accounts  on  the  Comptroller's  books,  it 
will  be  necessary  to  take  complete  inventories  of  all  the  City's 
assets  under  proper  headings  on  December  31st,  1909. 

Ordinance  No.  35,  1900,  approved  March  5th,  1900,  provides 
that  inventories  of  movable  and  perishable  property  shall  be 
made  annually  and  filed  with  the  City  Librarian.  This  ordi- 
nance is  indefinite  as  to  the  date  of  filing  inventories,  whether 
they  are  to  be  priced,  extended  and  approved  by  competent 
authority,  and  as  to  the  forms  in  which  they  are  to  be  rendered. 

For  the  purpose  of  continuing  the  idea  of  centralized  accounts 
and  maintaining  proper  control,  we  would  suggest  that  the 
ordinance  be  amended,  substituting  the  words  "Comptroller's 
Department"  for  the  words  ''City  Librarian,"  and  so  worded  as 
to  provide  for  the  immediately  preceding  suggestions. 

These  inventories  should  be  entered  on  the  books  as  at  Janu- 
ary 1st,  1910,  and  will  form  the  underlying  basis  for  the  system 
of'  controlling  accounts  on  the  General  Ledger  in  this  Depart- 
ment. 

The  following  example  illustrates  the  application  of  a  control 
account  as  to  Real  Estate  Tax  Revenue : 


Assume  that  the  Appeal  Tax  Court  reports  a  taxable  basis 
to    the    Collector    showing   a    valuation    of    real    property    of 
$icx),ooo,ooo,  on  which  the  tax  rate  has  been  fixed  at  two 
per   cent.,    and    that    the    City    Collector    is    chargeable    with 
$2,000,000   for   real   estate   taxes   to   be   collected.     The   City 
Collector  receives  from  the  Appeal  Tax  Court  the  details  of 
the  assessment,  the  Comptroller  receives  at  the  same  time,  from 
the  Appeal  Tax  Court,  the  aggregate  amount  of  the  assess- 
ments, and,  having  before  him  the  rate,  he  charges  the  City 
Collector  and  credits  Real  Estate  Tax  Revenue  with  $2,000,000. 
The  City  Comptroller  subsequently  reports  to  the  Comp- 
troller collections  on  above  account  of  $100,000.     Upon  the 
receipt  of  that  report,  the   Comptroller  credits  the   Collector 
and  charges  the  City  Register  with  $100,000.     Comparison  of 
the  report  covering  the  receipts  of  the  City  Register  with  the 
report  from  the  City  Collector  will  show  that  the  amount  col- 
lected has  in  fact  been  received  by  the  City  Register.     The 
control  account  on  the  Comptroller's  books  will  then  show  an 
open  balance  of  $1,900,000  to  the  debit  of  the  City  Collector, 
while  the  Collector's  books  will  show  the  details  aggregating 
this  amount. 

Changes  in  the  assessment  rolls  can  be  made  only  on  the 
order  of  the  Appeal  Tax  Court.  When  these  orders  are  made, 
the  original  should  be  sent  by  the  Court  to  the  Collector,  and  a 
duplicate  sent  to  the  Comptroller  for  proper  adjustment  of  the 
Control  Accounts. 

In  the  event  of  there  being  other  changes  in  the  details,  either 
of  the  amount  charged  or  the  amount  credited  to  these  accounts, 
information  concerning  same  should  be  at  once  conveyed  to  the 
Comptroller's  Department  in  the  manner  before  suggested,  that 
the  Comptroller  may  make  proper  adjustments  in  his  accounts, 
whereby  they  may  reflect  at  all  times  the  actual  condition,  and 
maintain  control  over  all  Departments. 

The  present  method  of  handling  pay  rolls  needs  only  slight 
modification.  We  recommend  that  the  pay  rolls  for  laborers 
be  made  up  by  a  different  person  from  the  one  whose  duty  it 
is  to  see  that  each  man  receives  the  amount  due  him  as  shown 
by  the  pay  roll.     The  Internal  Auditors  in  the  Comptroller's 


10 


Department  should  verify  all  pay  rolls,  paying  particular  atten- 
tion to  the  checking  of  the  time  records  of  the  men  on  pay 
rolls  that  include  laborers.  This  procedure  will  throw  an  added 
safeguard  about  the  large  disbursements  of  City  money  made 

through  this  channel. 

The  question  has  been  raised  as  to  the  advisability  of  creat- 
ing the  office  of  General  Paymaster  for  the  City.  From  the 
standpoint  of  safety,  we  can  see  no  advantage  in  such  an 
arrangement  over  the  present  system,  when  modified  and 
audited  as  previously  suggested. 

Under  the  present  general  system  of  administration,  materials 
and  supplies,  aggregating  a  large  amount,  are  purchased  by 
the  various  Departments.     Many  articles  of  the  same  kind  are 
purchased  separately  by  such  Departments.    Stores  of  materials 
and  supplies  of  a  like  nature  are  kept  in  several  places,  requir- 
ing the  attention  of  at  least  one  man  in  each  Department  where 
they  are  stored,  and  making  it  necessary  to  prepare  several 
inventories  for  the  same  kind  of  articles.     In  our  opinion,  the 
establishment  in  the  Comptroller's  Department  of  a  General 
Purchasing  Agent  would  be  of  advantage  in  many  ways.     His 
duties  should  include  a  careful  consideration  of  market  values 
of  articles  to  be  purchased,  and  he  should  inform  the  Board 
authorizing  purchases,  as  to  prices.     The  various  materials  and 
supplies  should  be  purchased  in  quantities  required  by  all  of 
the   Departments,   and    the   same   care   taken   as   to   business 
arrangements,  including  wholesale  prices  for  large  quantities, 
subject  to  the  same  cash  discounts  and  trade  discounts  as  are 
allowed  to  any  other  purchaser  under  similar  conditions. 

When  these  purchases  are  made,  they  should  be  charged  to 
General  Stores,  and  should  be  issued  on  requisition  as  needed 
bv  the  Departments,  charged  by  the  Comptroller  to  the  Depart- 
ments, and  credited  to  General  Stores.  The  Departments 
should  charge  the  proper  accounts  with  materials  or  supplies 
consumed.  After  tools  have  once  been  requisitioned  out  to  the 
Departments,  they  should  be  looked  after  to  such  an  extent  that 
when  a  requisition  for  replacement  is  received  it  should  be 
accompanied  by  notice  from  the  General  Store  Keeper  that 
the  worn-out  tools  have  been  returned  to  General  Stores.     This 


II 


would  tend  to  show  to  what  extent  tools  have  disappeared  from 
the  Departments. 

In  other  words,  instead  of  various  smaller  purchases  of  the 
same  or  similar  articles,  we  would  have  one  purchase  of  a 
larger  supply,  presumably  at  lower  prices;  instead  of  various 
depots  where  supplies,  etc.,  are  stored  and  looked  after  by  a 
greater  number  of  persons,  we  would  have  one  depot  looked 
after  by  fewer  persons ;  instead  of  the  purchases  being  made 
by  a  greater  number  of  persons,  they  would  then  be  made  by 
one  person;  and  all  the  material  and  supplies  would  be  sys- 
tematically accounted  for. 

An  illustration  of  the  advantage  of  following  the  foregoing 
plan  is  to  be  found  in  tlic  Department  of  the  Water  Engineer, 
where  the  system  relative  to  the  care  of  and  accounting  for 
stock  is  excellent. 

Payments  made  for  account  of  the  Board  of  Estimates,  Board 
of  Public  Improvements,  Diary  of  City  Council,  Municipal 
Telephone  Exchange,  Reformatories  and  other  items  for  which 
special  and  general  appropriations  are  made,  should  be  recorded 
on  the  Comptroller's  Ledger,  except  where  the  appropriation 
covers  expenditures  to  be  made  by  or  on  behalf  of  any  De- 
partment, in  which  case  the  payments  should  be  entered  on  the 
books  of  that  Department. 


CITY  REGISTER 

The  City  Register  is  register  of  the  Public  Debt,  and  Cus- 
todian and  Distributor  of  City  funds,  upon  warrant  of  the 
Comptroller.  He  should  arrange  the  receipts  of  Cash  in  a 
book  to  be  provided  with  columns,  classified  according  to  the 
sources  from  which  they  are  derived,  or  departmentally,  and 
should  deposit  in  bank  daily  all  receipts,  without  exceptions. 

All  Departments  should  send  to  the  City  Register  the  amounts 
collected  the  previous  day,  with  a  statement  showing  the 
sources  of  such  receipts.  A  duplicate  of  this  statement  should 
be  sent  to  the  Comptroller's  Department,  thus  doing  away  with 
the  necessity  of  the  Comptroller  issuing  a  Receiving  Warrant 

12 


i 


i 


to  the  City  Register,  except  in  the  case  of  the  Departments 
controlled  by  the  State. 

In  our  opinion,  it  would  be  better  if  all  payments  were  made 
by  check,  regardless  of  the  amount.  If  this  were  done,  the 
keeping  of  the  present  Petty  Cash  Book  could  be  dispensed 
with.  The  deposits  of  all  Receipts  in  bank  and  the  payment  of 
all  items  by  check  would  result  in  the  proof  of  the  footing  of 
the  Cash  Book  from  an  outside  source,  viz,  the  pass  books  of 
the  various  banks. 

The  present  practice  of  entering  the  number  and  amount  of 
each  check  in  the  bank  pass  books  should  be  discontinued,  as  it 
is  a  duplication  of  the  entries  on  the  Cash  Book  and  the  stubs 
of  the  check  books,  and  presents  an  opportunity  for  the  perpe- 
tration of  fraud  against  the  City. 

A  check  should  be  drawn  by  the  Register  upon  a  warrant  of 
the  Comptroller  to  provide  a  fund  for  interim  payments  on  pay 
rolls  of  laborers.  This  fund  should  be  at  all  times  on  hand,  con- 
sisting of  the  cash  or  pay  roll  tickets.  When  a  check  is  drawn 
for  the  pay  roll,  the  fund  should  be  reimbursed  for  the  amount 
of  the  tickets  on  hand,  and  the  tickets  returned  to  the  Paymaster 
of  the  Department  in  which  they  originated. 

No  distribution  of  expenditures  need  be  made  in  the  City 
Register's  Department,  as  such  distribution  is  provided  for  by 
the  Comptroller's  Disbursing  Warrant  Book.  The  City  Regis- 
ter should  only  be  required  to  enter  the  payments  on  the  credit 
side  of  his  Cash  Book,  giving  date  of  payment,  name  of  payee, 
warrant  and  check  numbers,  and  the  amount  paid. 

The  shortage  discovered  in  this  Department,  and  reported 
upon  by  us  under  date  of  May  15th,  1909,  was  due  to  the  lack 
of  proper  checks  on  the  daily  deposits  in  banks.  Such  checks 
have  since  been  instituted  and  are  now  in  use.  These,  com- 
bined with  the  control  account  and  system  of  internal  audit 
previously  recommended  in  this  report,  will  minimize  the  oppor- 
tunity for  theft  and  make  certain  its  early  detection. 

We  have  supervised  the  installation  of  blanks  which  account 
more  satisfactorily  for  the  petty  cash  on  hand  (pending  the 
discontinuance  of  the  Petty  Cash  Book)  and  also  for  reporting 
the  amounts  on  deposit  in  the  various  City  Depositories. 

13 


i 


<« 


t 


There  will  be  no  need  to  keep  a  Ledger  (except  Stock 
Ledgers)  in  this  Department,  the  necessary  information  being 
recorded  on  the  books  of  the  Comptroller. 

The  Stock  records  of  the  City  (Funded  Debt)  are  at  present 
kept  in  the  City  Register's  Department.  The  manner  of  keep- 
ing them  deserves  commendation,  as  it  throws  safeguards 
around  the  issuance  of  City  Stock,  and  minimizes  the  likelihood 
of  any  discrepancies  in  this  branch  of  the  work  of  the  City 
Register's  Department. 

The  books  provided  for  this  branch  of  the  work  are  gener- 
ally suited  to  the  purpose.  We  recommend,  however,  that  all 
cancelled  or  voided  stock  certificates  be  attached  to  the  stubs 
from  which  they  were  issued. 

A  book,  showing  at  a  glance  the  condition  of  the  City's 
Funded  Debt,  subdivided  as  to  loans,  should  be  provided,  and 
changes  recorded  therein  as  soon  as  they  occur. 

The  City  Register  should  render  a  daily  statement  to  the 
Comptroller,  a  duplicate  of  which  should  be  sent  to  the  Mayor, 
showing  the  receipts  and  disbursements  for  the  day  and  the 
amount  of  money  on  hand  belonging  to  the  City,  and  giving 
the  depositories  in  which  these  funds  are  located.  This  state- 
ment should  be  confirmed  by  the  banks  by  triplicate  written 
acknowledgment  of  amounts  deposited  with  them,  one  notice 
to  be  sent  to  the  Comptroller,  one  to  the  Mayor  and  one  to  the 
City  Register. 


CITY    Di:i*.\RTMENTS-  GHNERA!^    CRlTiaSMS  AND 

SUGGESTIONS 

In  our  discussion  of  the  various  Departments  of  the  City 
Government,  and  of  the  methods  of  accounting  now  in  force 
therein,  there  are  some  criticisms  and  suggestions  as  to  modifi- 
cations or  complete  changes  that  are  applicable  to  all  of  the 
City  Departments.  There  are  also  phases  of  the  work  and  the 
recording  of  the  results  that  are  distinctive  features  of  particu- 
lar Departments.  Having  in  mind  the  above  facts,  and  wishing 
to  submit  our  remarks  in  such  a  manner  as  to  be  most  easily 

14 


"V 


i 


f     « 


.') 


followed,  we  shall  refer  in  the  first  place  to  the  Departments 
generally,  and,  under  separate  headings,  to  the  distmctive  fea- 
tures of  specific  Departments. 

The  books  of  the  several  Departments  should  show  m  detail 
both  Revenue  and  Expenditures,  proper  control  over  the  same 
being  exercised  by  the  general  books  kept  in  the  Comptroller  s 
Department,  which  will,  however,  deal  with  total  amounts. 

There  should  be  provided  for  each  Department  wherem  pur- 
chases are  made,  a  Voucher  Record  Book  in  which  all  invoices, 
after  being  properly  approved  as  to  quantity,  prices  and  exten- 
sions and  the  original  requisition  attached  thereto,  should  be 
entered   and   appropriate   distribution   shown   against   Depart- 
mental appropriations.     The  amount  of  the  several  appropria- 
tions should  be  shown  at  the  head  of  the  columns  in  which  the 
distribution  of  charges  are  made.     When  the  invoices  are  ready 
for  payment.   Departmental   Disbursing  Warrants   should  be 
made   and  sent  with  the  invoices  to  the  Comptroller's  Depart- 
ment' and  this  fact  should  be  recorded  on  the  Voucher  Record 
Book      A  statement  should  be  sent  with  these  Invoices  and 
warrants   showing  the   condition   of  the   appropriations   after 
these  charges  have  been  made  against  them. 

We  aim  to  distinguish  between  Revenue  and  Cash  Receipts, 
the  present  accounts  in  a  majority  of  the  Departments  dealing 
exclusively  with  Receipts.  Therefore,  we  propose  to  install 
as  a  Book  of  Account  in  each  Department,  though  adapted  to 
their  several  needs,  what  we  shall  term  a  Revenue  Record  Book. 
In  this  entry  will  be  made  of  all  items  of  Revenue,  whether 
actual  Receipts,  or  Accounts  Receivable,  and  reported  daily  to 
the  City  Comptroller  on  blanks  designed  for  that  purpose.  Pro- 
vision should  be  made  for  an  analysis  showing  the  nature  or 
source  of  Revenue,  and  for  recording  other  desirable  data. 

No  Department  should  be  allowed  to  deliver  property  sold 
by  the  City,  except  on  order  duly  authorized,  accompanied  by 
a' receipted  bill  for  the  property  in  question  from  the  City  Reg- 
ister. In  some  instances,  the  amount  to  be  received  cannot  be 
calculated  prior  to  the  delivery  of  the  property,  in  which  case 
the  Department,  having  made  proper  entry  on  its  records, 
should  send  to  the  Comptroller  a  duplicate  bill.     All  bills  ren- 

15 


\ 


-r* 


dered  by  the  Department  should  be  reported  in  detail,  upon 
proper  blanks,  to  the  City  Comptroller.  The  Department 
should  notify  the  Comptroller  when  such  bill  is  paid. 

If  for  any  reason  Cash  has  been  received  in  the  Department, 
such  Cash  should  be  deposited  with  the  Register  on  the  day 
following,  and  a  report,  with  the  duplicate  bill,  sent  to  the 
Comptroller. 

In  many  Departments  the  term  "Expenditures"  is  used  where 
''Disbursements"  (of  Cash)  is  intended  to  be  understood.  That 
is  to  say,  Departmental  Expenditures,  as  now  shown,  are  merely 
Departmental  Disbursements,  while  there  may  be  held  in  abey- 
ance for  future  payment  many  bills  that  should  be  included  in 
the  current  expenses  of  the  Department. 

Materials  and  Supplies  should  not  be  received  unless  accom- 
panied by  invoices.  After  complete  checks  in  all  details  as  to 
receipts  of  goods,  calculations,  extensions,  and  prices,  these 
invoices  should  be  approved  for  payment  by  the  properly 
authorized  persons,  and  entered  upon  the  Voucher  Record 
Book,  in  which  distribution  will  be  made  to  the  accounts 
afifected  by  the  charge.  Reports  as  to  these  transactions  should 
be  sent,  as  they  occur,  to  the  Comptroller.  This  method  would 
record  obligations  of  the  City  entered  into  by  its  Departments, 
maintain  control  accounts  over  the  Departments,  and  would 
show  the  amounts  disbursed  and  the  balances  unpaid  on  account 
of  expenditures  to  date. 

The  Board  of  Park  Commissioners  send,  with  all  orders,  bills 
numbered  to  correspond  with  the  orders.  Such  form  bills  are 
to  be  used  by  the  firm  from  whom  goods  are  ordered,  in  place 
of  their  regular  invoices.  This  plan  could  be  installed  to  advan- 
tage in  the  various  Departments.  If  the  items  composing  the 
charge  cover  more  space  than  is  allotted  in  the  form  bill,  regu- 
lar firm  bills  could  be  attached,  and  a  recapitulation  made  on 
the  form  bill.  This  will  facilitate  checking  the  unfilled  orders, 
preclude  the  possibility  of  duplications  of  bills,  and  insure  uni- 
formity of  Department  records  from  the  time  of  placing  the 
order  until  it  is  sent,  with  the  approved  bills,  to  the  Comptroller's 
Department  for  payment  and  proper  filing. 

l6 


V 


)■' 


The  present  practice  of  charging  upon  the  books  of  one 
Department  expenditures  made  for  another  Department  con- 
fuses the  accounts  as  to  the  two  Departments  affected.  For  the 
purpose  of  uniformity  and  the  convenient  grouping  of  closely 
allied  expenditures  we  recommend  that  the  appropriations  be 
charged  to  the  Department  to  which  the  benefits  resulting  from 
such  expenditure  will  accrue. 

To  illustrate,  appropriations  made  for  the  purchase  of  ground 
or  the  erection  of  buildings  for  school  purposes  would,  in  our 
opinion,  be  chargeable  to  the  Board  of  School  Commissioners, 
and  they  should  be  held  accountable  for  all  disbursements  made 
against  such  appropriations. 

APPEAL  TAX  COURT  AND  CITY  COLLECTOR 

The  Appeal  Tax  Court  prepares,  annually,  and  charges  the 
City  Collector  with  the  entire  taxable  basis  for  the  ensuing 
yeaV ;  subsequently  the  Court  orders  abatements,  reassessments 
and  exemptions,  and  notifies  the  Collector  of  these  changes,  in 
order  that  he  may  properly  adjust  his  accounts. 

The  Comptroller  should  be  notified  by  the  Appeal  Tax  Court 
of  the  amount  of  taxable  basis  sent  to  the  City  Collector  at  the 
beginning  of  the  fiscal  year.  He  should  also  be  notified  by  the 
Appeal  Tax  Court  of  any  changes  sent  to  the  Collector  by 
reason  of  abatements,  reassessments  and  exemptions,  and  the 
Collector  should  notify  the  Comptroller  daily  of  all  changes  in 
the  amount  of  taxable  basis,  resulting  from  collections. 

The  foregoing  recommendations  are  made  for  the  purpose  of 
enabling  the  Comptroller  to  establish  and  maintain  Control 
Accounts  over  the  Collector's  Department. 

While  the  general  provisions  of  Section  147  of  the  City  Code 
are  carried  out  by  the  Appeal  Tax  Court,  the  failure  to  notify 
the  Collector  of  changes  made  in  the  records  after  the  entries 
have  been  made  on  his  books,  leads  to  confusion,  and  destroys 
the  balance  which  should  exist  between  the  records  of  the 
Appeal  Tax  Court  and  those  of  the  City  Collector's  Department. 

In  transmitting  the  orders  of  the  Appeal  Tax  Court  to  the 
Collector's  Department,  greater  care  should  be  taken  in  the 

^7 


description  and  classification  of  the  property  referred  to,  andjn 
giving  the  name  of  the  owner,  in  order  to  faciHtate  the  location 
of  the  property  in  the  Collector's  Department. 

All  reclassification  of  Suburban  and  Rural  property  should 
be  made  through  the  Abatement  Book  and  the  property  reas- 
sessed as  ordered.  The  present  plan  of  notifying  the  Collector 
by  use  of  skeleton  bills  marked  ''Reclassified"  should  be  dis- 
continued ;  it  was  a  source  of  error  and  confusion  during  the 
period  covered  by  our  audit. 

In  assessing  improvements  on  Real  Estate,  included  in  the 
Tax  Rolls,  the  original  assessment  should  be  abated,  and  a  new 
basis,  including  the  improvement,  should  be  established. 

The  office  space  devoted  to  the  Appeal  Tax  Court  is  insuffi- 
cient to  accommodate  the  public  visiting  it  for  business  pur- 
poses, without  crowding  the  clerks  to  such  an  extent  as  to 
retard  their  work  and  lessen  its  effectiveness. 

On  October  first  of  each  year,  the  City  Collector  receives 
from  the  Appeal  Tax  Court  the  new  basis  of  Taxation  for  the 
ensuing  year  beginning  January  ist.  The  various  assessments 
on  the  books  at  September  30th,  1909,  are  transferred  to  the 
1910  records,  furnishing  the  foundation  for  the  new  assessment, 
upon  which  is  applied  abatements  of  assessments,  and  reassess- 
ments for  1910.  Upon  receiving  this  information,  the  Collector 
prepares  his  rolls,  according  to  law,  by  setting  up  under  the 
names  of  the  owners,  the  assessments  of  all  property,  whether 
real,  personal  or  securities.  After  he  has  recorded  this  infor- 
mation, he  opens  his  books  on  January  ist,  for  collection  of 
Taxes.  Each  Ledger  in  the  Collector's  Department  is  in  charge 
of  a  clerk,  who,  upon  application,  makes  out  bills  for  Tax 
Pavers. 

Under  the  system  at  present  prevailing  in  the  Collector's 
Department,  much  delay  and  irritation  are  caused  the  taxpayer 
who  has  acquired  Real  Estate  since  the  last  assessment.  His 
name  may  not  appear  on  any  of  the  Ledgers,  hence,  after  the 
delay  caused  by  an  attempt  to  locate  the  property,  visiting  the 
Appeal  Tax  Court,  and  in  some  cases  the  Rural  and  Suburban 
desks,  the  property  is  finally  located  on  the  City  books,  stamped 
"Rural"   or    "Suburban."      This   particular   difficulty   can   be 

18 


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I 


l>  / 


'*\ 


/• 


1' 


I 


obviated  by  having  all  reclassification  of  Suburban  and  Rural 
property  made  through  the  Abatement  Book  and  the  property 
reassessed  as  ordered.  We  would  suggest  that  a  person  be 
employed  to  visit  daily  the  office  in  which  deeds  are  recorded, 
to  ascertain  all  transfers  of  Real  Estate,  and  submit  this  infor- 
mation to  the  City  Collector,  in  order  that  the  changes  of  own- 
ership may  be  promptly  noted  on  his  books. 

We  recommend  that  each  Cash  Book  contain  only  the  cash 
entries  to  be  credited  to  the  accounts  in  the  Ledger  of  cor- 
responding number.  This  would  afford  an  easy  and  efficient 
means  of  establishing  proof,  and  locating  errors.  Under  the 
present  method,  an  audit  of  this  Department  entails  the  expen- 
diture of  more  time  and  money  than  would  be  necessary  under 
the  plan  here  suggested. 

Conditions  disclosed  during  the  progress  of  our  examination 
led  to  improvements  in  the  methods  of  accounting  in  this 
Department  as  to  reporting  upon  the  daily  basis  collected  on, 
and  as  to  the  manner  of  handling  collections  applying  on  old 

Levies. 

Our  audit  disclosed  numerous  errors  made  in  posting  from 
the  Cash  Books  to  the  Ledgers.  We  have  had  these  errors 
adjusted  on  the  Ledger,  in  order  to  show  the  condition  of  the 
open  accounts  as  at  June  30th,  1909. 

Items  entered  by  the  Appeal  Tax  Court  upon  the  Abatement 
Book  should  be  posted  daily  in  the  Collector's  Department,  and 
included  in  the  changes  reported  to  the  Comptroller's  Depart- 
ment. The  Internal  Auditors  should  check  in  detail  the  abate- 
ments and  exemptions,  in  order  to  guard  against  duplication  of 
entries  such  as  were  found  during  the  progress  of  our  audit. 

The  duties  of  the  General  Cash  Bookkeeper  in  this  Depart- 
ment are  such  that  greater  care  should  be  exercised  in  their 
performance,  in  order  that  correct  settlements  of  collections 
may  be  made  with  the  City  and  State. 

The  present  practice  of  allowing  discount  to  those  who  pay 
their  taxes  within  a  specified  time  leads  to  errors,  causes  addi- 
tional labor,  and  greatly  increases  the  cost  of  collections. 

In  some  of  our  large  cities,  the  allowance  of  discount  has 
been  discontinued  with  satisfactory  results,  and  it  is  worthy  of 

19 


I 


careful  consideration  whether  or  not  to  discontinue  the  allow- 
ance of  discount  in  the  case  of  this  City.  While  it  may  be 
argued  that  the  allowance  of  discounts  induces  earlier  pay- 
ments and  obviates  the  necessity  for  temporary  loans,  this  argu- 
ment seems  to  be  answered  by  the  fact  that  shortening  the  date 
from  which  interest  accrues  on  the  unpaid  amount  has  been 
found  to  be  efficient  in  securing  prompt  payments,  and  saves 
to  the  City  the  amount  of  discount. 

In  our  final  report  on  the  audit  of  this  Department,  under 
date  of  October  14th,  1909,  we  referred  to  the  practice  of 
reporting  collections  calculated  on  the  basis  of  collections, 
rather  than  on  amounts  actually  collected.  It  is  evident  that 
the  present  method  is  productive  of  much  error  and  loss  of 
time,  which  could  be  avoided  by  reporting  amounts  actually 
collected. 

Care  should  be  taken  to  separate  collections  into  the  years 
in  which  the  levies  were  made,  because  different  rates  prevail 
for  the  different  years. 

Under  the  present  system  a  bill  covering  a  certain  parcel  of 
property  is  sometimes  paid  twice.  Refunds  covering  these 
overpayments  can  only  be  made  on  order  of  the  Appeal  Tax 
Court,  which  should  advise  the  Comptroller  of  the  amount  of 
all  refunds. 

Errors  are  also  made  in  calculating  the  amount  of  bills,  result- 
ing in  overcharges.  Refunds  covering  these  overcharges  are 
now  made  by  the  City  Collector  from  his  "Over"  fund.  This 
practice  will  be  discontinued,  in  the  event  of  our  suggestions 
regarding  method  of  settlements  being  adopted,  and  such 
refunds  will  then  be  made  through  the  City  Register  upon 
Comptroller's  Disbursing  Warrants. 

At  present,  refunds  of  overcharges  for  taxes  are  made  by 
the  Collector.  We  have  previously  suggested,  in  this  report, 
that  no  payments  of  any  kind  should  be  made,  except  by  check 
of  the  City  Register  on  warrant  of  the  Comptroller.  This  class 
of  payments  should  be  included  in  that  suggestion,  and  the 
party  to  whom  the  refund  is  made  should  be  charged  with  the 
amount  by  the  Collector,  the  Comptroller  issuing  his  warrant  to 
the  Register  on  receipt  of  the  order  from  the  Collector,  thus 

20 


preserving  the  agreement  between  his  Control  Account  and  the 
record  of  uncollected  taxes  in  the  Collector's  Department. 

All  assessments  and  abatements,  maxie  by  the  Appeal  Tax 
Court  after  October  ist,  in  each  year,  applicable  to  the  ensuing 
year's  tax  rolls,  should  be  properly  indexed  in  bound  books, 
and  not,  as  is  now  done,  on  slips  of  paper  W'hich  are  liable  to 
be  lost. 

Personal  Property  goes  into  arrears May  ist 

Real   Property    July  ist 

State  Taxes    Jan.  ist 

Maryland  Corporations  paying  City  taxes.  .Jan.   ist 

It  would  greatly  facilitate  the  clerical  work  in  the  Collector's 
Department  if  provision  were  made  by  which  all  City  taxes 
w  ould  go  into  arrears  on  the  same  date. 

The  Baltimore  City  Code,  1906,  page  547,  Section  843,  pro- 
vides as  follows : 

"843.  All  taxes  now  levied,  or  which  hereafter  may  be 
levied  in  the  City  of  Baltimore,  shall  be  collected  within  four 
years  from  the  levying  of  the  same;  and  the  collection  of 
taxes  shall  not  be  enforced  by  law  after  the  lapse  of  the  said 
four  years,  and  the  party  from  whom  said  taxes  may  be  de- 
manded may  plead  this  section  in  bar  of  any  recovery  of  the 
same.  Any  person  enforcing  or  attempting  to  enforce  the 
collection  of  any  tax  after  the  lapse  of  four  years,  shall  be  liable 
to  a  penalty  of  twenty  dollars  for  each  and  every  offense,  recov- 
erable before  a  Justice  of  the  Peace,  in  the  name  of  the  State, 
one-half  to  the  informer,  the  other  half  to  the  City  of  Balti- 
more." 

In  the  majority  of  cases,  taxes  long  in  arrears  consist  of  those 
on  personal  property.  This  seems  to  be  due,  in  a  large  measure, 
to  the  lack  of  mandatory  requirements  as  to  their  prompt  col- 
lection. By  reason  of  the  delay,  many  things  happen  which 
make  it  impossible  to  collect,  viz :  death  or  removal  from  the 
City,  business  failures,  change  of  ownership,  etc. 

By  the  time  collection  is  barred,  there  is  a  large  amount  of 
personal  taxes  lost  to  the  City.  Under  the  present  system  the 
accounts  fail  to  show  the  large  amount  of  loss  entailed  each 

21 


I 


''( 


'I 


year  upon  the  City  by  the  ineffectiveness  of  its  present  methods 
of  collection. 

Each  year  all  personal  taxes  remaining  unpaid  over  a  period 
of  four  years  should  be  abated  by  the  Appeal  Tax  Court,  if 
uncollectible  and  having  been  previously  included  in  the  credit 
to  revenue  under  the  treatment  hereinbefore  recommended,  the 
amount  should  be  charged  against  revenue,  thus  showing  each 
year  the  loss  resulting  to  the  City  from  the  failure  to  collect. 

In  regard  to  the  personal  taxes  which  have  not  been  barred, 
some  different  method  should  be  adopted  for  their  collection  as 
soon  as  possible  after  they  become  delinquent. 

At  present,  we  can  suggest  no  more  effective  way  than  to 
appoint  an  attorney-at-law  on  a  yearly  salary  to  act  as  an 
assistant  to  the  Collector.  It  should  be  his  duty  to  enforce  the 
payment  of  all  delinquent  personal  taxes,  by  the  use  of  every 
legal  means. 

The  Tax  Bailiffs  are  appointed  by  the  City  Collector,  and  are 
authorized  to  superintend  the  collection  of  taxes  in  arrears. 
By  Ordinance  66,  June  i8th,  1900,  and  Ordinance  40,  January 
nth,  1904,  it  is  provided  that  "The  bailiffs  ....  shall  receive 
as  compensation  the  three  per  centum  added  to  bills  for  taxes 
in  arrears  and  collected  by  the  City  Collector  under  the  law, 
to  be  divided  equally  among  them." 

The  amount  to  be  divided  is  ascertained  from  the  Collector's 
records,  and  credited  to  Tax  Bailiffs'  Account  on  the  Comp- 
troller's Ledger.  Payments  are  regularly  made  through  the 
Comptroller's  Department,  on  Disbursing  Warrants,  thus  bal- 
ancing the  account. 

The  present  plan  of  handling  this  matter  is  good  and  should 
be  continued. 

Collections  made  on  assessments  levied  for  Opening  and 
Condemning  Streets  should  be  reported  to  the  City  Comptroller 
and  collections  made  for  Grading,  Paving  and  Curbing  Private 
Alleys,  Footways,  etc.,  should  be  reported  to  the  City  Comp- 
troller and  to  the  City  Engineer. 

There  are  at  present  outstanding  on  the  Ledger  for  Opening 
and  Condemning  Streets,  in  the  City  Collector's  Department, 
charges  made  against  the  Mayor  and  City  Council,  for  a  large 

22 


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\ 


^ 


amount.  These  charges  were  made  from  information  fur- 
nished by  the  Commissioners  for  Opening  Streets  and  the  City 
Engineer,  in  order  to  show  the  cost  to  the  City  of  such  expen- 
ditures. We  recommend  that  the  amounts  now  charged  be 
written  off  at  the  end  of  the  present  fiscal  year,  and  that  in 
future  no  charges  be  made  to  the  Mayor  and  City  Council  for 
such  work  on  the  City  Collector's  books. 


COLLECTOR  OF  WATER  RENTS    \XI'   LICENSES 

We  would  suggest  that  proper  control  be  established  over 
the  Revenue  of  this  Department.  To  bring  out  more  clearly 
the  prevailing  conditions,  and  our  suggestions  regarding  them, 
we  shall  refer  to  them  under  three  heads,  viz  :  Flat  Rate  Water 
Rents,  Meter  Rate  Water  Rents,  and  Licenses. 

The  Flat  Rate  charges  are  made  up  as  of  the  first  day  of 
January  of  each  year,  and  charged  upon  the  departmental  books 
against  the  consumers.  The  Water  Engineer  should  report  the 
total  of  such  charges  to  the  Comptroller,  in  order  that  the 
Comptroller  may  know,  from  his  records,  what  is  the  amount 
of  Flat  Rate  Water  Rents  to  be  collected.  These  charges  may 
be  augmented  or  reduced  in  amount  as  new  service  is  installed, 
or  as  present  service  is  discontinued ;  but  in  either  case,  suit- 
able notification  should  be  sent  to  the  Comptroller,  preferably 
from  the  Water  Engineer's  Office. 

Meter  readings  are  made  by  the  Water  Engineer's  Depart- 
ment; and  we  suggest  that  the  aggregate  amount  of  charges 
based  on  Meter  readings  and  rates  be  reported  by  the  Water 
Engineer  to  the  Comptroller,  the  detail  of  such  charges  being 
entered  upon  the  books  of  the  Collector  of  Water  Rents  and 
Licenses,  thus  getting  the  greatest  amount  of  information  from 
sources  other  than  the  Department  of  Collector  of  Water  Rents 
and  Licenses. 

All  charges  for  turning  water  on  or  off,  and  for  services  in 
the  nature  of  plumbing,  etc.,  are  to  be  made  as  they  accrue,  and 
record  of  same  is  to  be  sent  to  the  Comptroller,  with  the  state- 
ment of  regular  charges  or  abatements,  shown  separately,  in 

23 


V 


order   to   preserve   proper  control   over   the   several   kinds   of 
Revenue. 

The  Collector  will  deposit  daily  all  receipts  with  the  City 
Register,  reporting  to  the  Comptroller,  both  as  to  the  amount 
and  as  to  the  nature  of  the  collections,  w^hether  on  Flat  Rate, 
Meter  Rate,  Plumbing,  or  other  sources. 

At  any  time,  the  amount  of  Water  Rents  uncollected  on  the 
Comptroller's  Ledger  should  be  reflected  in  detail  in  the 
accounts  upon  the  books  of  the  Collector  of  Water  Rents  and 
Licenses,  which  condition  would  tend  to  lessen,  and  aid  in 
locating  errors,  wdiether  of  a  clerical  nature  or  intended  to 
cover  fraud. 

Licenses  are  issued  only  upon  receipt  of  cash,  and  the  safe- 
guards thrown  about  the  revenue  returns  from  this  source, 
and  the  recording  of  same,  seem  to  minimize  the  possibility  of 
error  or  fraud.  Cash  received  on  account  of  the  issue  of 
Licenses  should  be  deposited  daily  w^ith  the  City  Register,  and 
notification  sent  to  the  Comptroller.  All  records  in  the  office 
of  the  Collector  of  Water  Rents  and  Licenses  should  be  subject 
to  frequent  examinations  by  the  Comptroller's  Office,  through 
its  Internal  Auditors. 

During  the  progress  of  our  examination  of  the  records  of 
this  Department,  there  has  been  continued  and  well-directed 
eflFort  on  the  part  of  the  Collector  of  Water  Rents  and  Licenses 
and  his  assistants  to  improve  the  accounting  methods  in  his 
Department  in  all  directions. 

The  transfer  from  the  Comptroller's  Department  of  all  col- 
lections, now  made  by  him,  to  this  Department,  as  previously 
suggested,  and  the  adoption  of  the  foregoing  recommendations 
will  further  increase  its  efficiency,  extend  its  usefulness  and 
increase  its  importance  as  a  City  Department. 


BALTIMORE  CITY  JAIL 

The  present  system  of  recording  the  transactions  in  this 
Department  furnishes  an  efficient  check  upon  the  purchase  of 
supplies  and  upon  expenses. 

24 


/; 


The  original  numbered  order  is  returned  with  the  invoice 
covering  the  purchase  and  attached  to  the  stub  from  which  it 
was  taken,  for  the  purpose  of  conveniently  checking  up  the 
unfilled  orders. 

We  suggest  that,  upon  its  receipt  with  the  invoices,  the  order 
be  checked  with  the  stub  of  the  Order  Book,  and  that  the 
invoice,  with  the  order  attached,  be  sent,  with  the  Disbursing 
Warrant,  to  the  Comptroller.  This  would  serve  the  same  pur- 
pose of  the  method  at  present  in  use,  and,  at  the  same  time, 
complete  the  vouchers  filed  with  the  Comptroller. 

It  is  unnecessary  to  keep  duplicate  invoices  in  this  Depart- 
ment ;  and  we  recommend  that  the  practice  be  discontinued. 
Such  information  contained  in  the  original  invoices,  as  may  be 
desirable,  can  be  kept  in  memorandum  books. 

A  Voucher  Record  Book  should  be  kept  for  recording  all 
invoices  after  they  have  been  properly  approved  as  to  quantity, 
prices  and  extensions.  It  should  contain  columns  with  head- 
ings representing  each  departmental  expenditure,  the  amount 
appropriated  for  such  expenditure  being  included  as  a  part  of 
the  headings.  The  footing  of  each  column  deducted  from  the 
amount  of  appropriation  shown  in  the  heading  would  show  at 
all  times  total  expenditures  incurred,  whether  paid  or  unpaid, 
and  the  balance  representing  unexpended  appropriation.  No 
goods  should  be  received  unless  accompanied  by  the  invoice 
and  the  original  order. 

The  present  method  of  accounting  for  "Prisoner's  Cash"  and 
^'Prisoner's  Shop  Earnings"  is  good,  and  no  changes  are  recom- 
mended. 

Neither  the  books  and  records  of  this  Department,  nor  the 
jail  records,  are  adequately  protected  from  fire  or  other  causes 
of  destruction.  Jail  records,  covering  a  period  of  many  years, 
and  compiled  at  no  small  expense  and  labor,  are  filed  in  wooden 
filing  cases.  These  records  are  extensive  and  valuable,  and  it 
would  be  almost  impossible  to  duplicate  them,  should  they  be 
destroyed. 


25 


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I 


BAY  V!F\\^  ASYLUM 

Our  general  suggestions  covering  Departments  are  partially 
carried  out  in  this  Department,  as  the  accounts  are  now  kept. 
The  present  form  of  Invoice  Book  could  easily  be  made  to  con- 
form to  the  Voucher  Record  Book;  but  a  Revenue  Record 
Book  should  be  installed  in  place  of  the  present  Cash  Book. 

The  keeping  of  a  Ledger  in  this  Department  could  be  dis- 
pensed with,  and  the  information,  required  by  the  Superinten- 
dent and  Board  of  Supervisors,  submitted  on  blanks  provided 
for  the  purpose.  The  Store  Room  Book  is  a  necessary  record 
and  is,  at  present,  adequate  to  the  needs  of  the  office.  Stores 
are  now  distributed  only  upon  proper  requisition.  A  complete 
file  of  such  requisitions  should  be  kept  as  a  part  of  the  depart- 
mental records. 

A  few  journal  entries  are  necessary  at  the  end  of  each  month, 
and  we  suggest  that  they  be  made  upon  loose  leaf  journal 
sheets,  properly  signed,  and  regularly  filed,  and  not  upon 
Voucher  Record  or  Store  Room  Books. 

All  invoices  approved  for  payment  should  be  covered  bv  Dis- 
bursing Warrants,  which  should  be  numbered,  and  entered  in 
consecutive  order  in  the  Voucher  Record  Book. 


BOARD  OF  i  IRE  COMMISSIONERS 

The  books  and  accounts  in  this  Department  supply  the  neces- 
sary information,  keep  a  proper  check  on  all  receipts  and  dis- 
bursements, are  accurately  and  neatly  kept,  and  reflect  credit 
upon  those  in  charge  of  the  work. 

The  principal  books  in  this  Department  conform  closely  to 
our  suggestions  as  to  a  Voucher  Record  Book,  subject  to  slight 
modifications.  The  present  Cash  Book  should  be  dispensed 
with,  as  all  information  concerning  disbursements  now  obtained 
from  this  book  can  be  incorporated  in  the  Voucher  Record 
Book.  Totals  of  Expenditures  should  be  forwarded  from 
month  to  month  (and  not  carried  to  a  recapitulation  sheet,  as 
at  present),  thus  showing  at  any  time  the  amount  of  the  appro- 
priation  expended   and   the   amount   unexpended.     The    total 

26 


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expenditures  for  salaries,  expenses  and  special  appropriation 
accounts  as  now  shown  on  the  Cash  Book,  and  used  in  checking 
with  the  Comptroller's  Office,  can  be  shown  to  better  advantage 
on  forms  speciallly  prepared  from  the  Voucher  Record  Book. 

Expenditures  made  for  the  purchase  of  lots,  the  construction 
of  buildings,  etc.,  for  this  Department  are  now  charged  on  the 
books  of  the  Inspector  of  Buildings.  We  recommend  that  the 
appropriations  for  such  purposes  be  charged  to  this  Depart- 
ment, in  which  case  the  expenditures  should  be  entered  on  its 
books. 

To  cover  the  receipts  of  the  Department,  the  general  form 
of  Revenue  Record  Book,  arranged  for  analysis  of  Revenue, 
will  be  a  sufficient  provision  for  recording  the  receipts  of  this 
Department. 

The  Company  Expenses  Book,  showing  disbursements  on 
account  of  each  Company,  can  be  kept  as  a  Departmental 
Record,  and  while  the  detail  cannot  well  be  eliminated,  the 
book  itself  can  be  of  a  more  convenient  size,  as  we  have  already 
suggested. 

BOARD  OF  PARK   Cf)MMISSK)NI-:RS 

The  method  of  recording  receipts  and  disbursements  of  this 
Department  is  generally  good,  especially  in  the  matter  of  pur- 
chases. The  present  practice  is  to  charge  an  account  from  the 
requisition,  before  the  invoice  and  the  goods  named  in  such 
requisition  have  been  received  and  the  invoice  approved.  This 
defective  method  will  be  overcome  by  the  installation  of  the 
Voucher  Record  Book  outlined  in  our  general  suggestions,  into 
which  entry  of  the  invoice  will  not  be  made  until  approved. 

As  it  is  necessary  to  show  the  distribution  of  expenditures 
in  numerous  accounts,  it  will  be  advantageous  to  analyze  such 
expenditures  in  subsidiary  books,  which  will  be  under  the  con- 
trol of  the  Voucher  Record  Book. 

The  Revenue  Record  Book  should  show  all  amounts  of  Reve- 
nue to  be  collected,  and  should  be  arranged  to  show  readily 
items  paid  and  unpaid.  In  our  opinion  the  control  of  Rent 
Revenue  should  be  from  sources  outside  the  Department.    This 

27 


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} 


can  be  accomplished   in  a   manner  that   will  conform  to  the 
general  idea  of  controlling  the  Revenue  of  the  City. 

The  plan  of  having  regularly  numbered  orders  with  form 
bills  attached,  which  bills  are  to  be  filled  out  in  lieu  of  the  regular 
bills  of  creditors,  has  many  points  in  its  favor,  and  might  well 
be  adopted  by  other  Departments. 

The  receipts  of  this  Department  are  large  in  amount,  and 
should  be  verified  by  the  Comptroller,  through  his  Internal 
Auditors,  at  frequent  intervals. 


BOARD  UF  SCHOUl    COMMISSIONERS 

The  records  of  Disbursements  for  this  Department  are  kept 
in  two  books,  viz :  "Register  of  Vouchers"  and  "Appropria- 
tions and  Expenditures."  As  the  items  and  totals  are  posted 
each  month  from  the  former  to  the  latter,  we  would  suggest 
that  the  proposed  "V^oucher  Record  Book"  combine  the  uses 
of  the  two  books  above  mentioned.  Further  distribution  of 
the  amounts  of  purchases  for  the  several  schools  may  be  kept 
as  at  present,  as  departmental  memoranda. 

Expenditures  made  for  the  purchase  of  lots,  the  construc- 
tion of  buildings,  etc.,  for  this  Department  are  now  charged  on 
the  books  of  the  Inspector  of  Buildings.  We  recommend  that 
the  ai)propriation  for  such  purposes  be  charged  to  this  De- 
partment, in  which  case  the  expenditures  should  be  entered 
on  its  books. 

At  present  the  receipts  of  the  Department  are  kept  only  in 
memorandum  form,  and  not  on  the  books  of  record.  An  effort 
was  made  to  check  the  receipts  for  tuition  of  non-resident  pupils, 
but  there  is  no  basis  for  doing  so,  as  the  office  memoranda  is 
made  up  from  receipts  slips  returned  to  them  by  the  Comptrol- 
ler's Office,  and,  except  for  clerical  errors,  should  agree  with  the 
Comptroller's  records.  All  recei])ts  should  be  a  matter  of 
record  in  the  Department,  and  should  be  controlled  by  accounts 
on  the  Comptroller's  books.  Information  regarding  these  re- 
ceipts should  be  recorded  in  a  Revenue  Record  Book,  the  instal- 
lation of  which  we  recommend. 

28 


CITY  ENGINEER 

The  Voucher  Record  in  this  Department  should  show  dis- 
tribution of  expenditures  classified  into  a  small  number  of  gen- 
eral accounts  and  control  a  subsidiary  record  of  the  expendi- 
tures, classified  into  any  desired  number  of  accounts. 

All  items  of  Revenue  should  be  distributed  upon  the  Revenue 
Record  Book,  showing  their  sources  and  whether  collected  or 
accrued.  It  should  also  provide  for  control  over  items  received 
for  Private  Paving  and  Inspection,  in  order  that  these  items 
may  be  easily  accounted  for  upon  the  Private  Paving  and 
Inspection  Ledger. 

Greater  care  in  recording  the  accounts  relating  to  Private 
Paving  and   Inspection  is  desirable,  and  it  would   seem  that 
a  part  of  the  time  expended  in  the  work  of  the  sub-departments 
could  be  better  directed  towards  having  complete  records  in  the 
general  books  of  the  Department.    The  present  method  causes 
unnecessary  duplication  of  accounts.     We  suggest  that  reports 
be  made  to  the  Comptroller  of  all  permits  issued  and  amounts 
to  be  collected  for  Private  Paving  and  Inspection.     This  will 
form  a  basis  of  a  Control  Account,  as  outlined  in  our  general 
suggestions.     All  charges  and  credits  should  be  posted  to  the 
Pr'ivate  Paving  and  Inspection  Ledger.     For  all  work  of  this 
nature,  bills  should  be   made   without  exception  and  entered 
upon  the  Private  Paving  and  Inspection  Ledger,  and  the  Comp- 
troller notified  in  order  that  he  may  know  the  adjustments  in 
the   Comptroller's   Account  are   necessary     No  bills   need  be 
entered  in  the  sub-departments,  as  all  needed  information  could 
be  obtained  from  the  Department     In  this  way  the  Ledger 
would  reflect,  at  all  times,  both  the  amounts  that  are  subject  to 
a  refund,  upon  application,  and  amounts  due  the  City  for  work 
done  in  excess  of  the  estimated  cost     If  desirable,  the  Private 
Paving  and  Inspection  Ledger  could  be  so  kept  as  to  show 
information  respecting  the  cost  of  Private  Paving  and  Inspec- 
tion, the  amount  of  cash  received  and  the  amounts  outstanding. 
Private  Alleys,  Footways  and  Sundry  Streets  are  paved  by 
the  City  Engineer  and  paid  for  by  owning  or  abutting  property 
holders.     Collections  to  cover  the  cost  are  made  by  the  City 

29 


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Collector.  Assessments  should  be  made  up  by  the  City  Engi- 
neer's Office,  and  both  the  Comptroller  and  the  City  Collector 
should  be  notified  of  the  amounts  to  be  collected.  Entry  of  the 
amount  collected,  on  the  City  Engineer's  Books,  is  unnecessary 
as  all  his  Department  needs  is  to  be  advised  of  the  collection  of 
the  assessments  in  order  that  he  may  begin  work. 

A  record  should  be  kept  of  Public  Franchises  and  Minor 
Privileges  issued  by  this  Department,  and  notification  of  same 
sent  to  the  Comptroller.  Should  our  recommendations  be 
adopted  regarding  the  collection  of  these  Public  Franchises 
and  Minor  Privileges  by  the  Collector  of  Water  Rents  and 
Licenses,  notice,  upon  blanks  provided  for  that  purpose,  should 
be  sent  to  the  Comptroller,  in  order  that  he  may  maintain  con- 
trol over  the  receipts  from  same  as  reported  to  him  by  the  Col- 
lector of  Water  Rents  and  Licenses. 


CITY    TTH! 


This  Department  purchases  stationery  and  office  supplies  for 
the  various  City  Departments  and  keeps  a  record  of  all  such 
purchases. 

There  should  be  provided  for  his  use  a  Voucher  Record 
Book,  with  columns,  showing  under  appropriate  headings,  the 
various  Departments  chargeable  with  purchases,  the  appropria- 
tions for  such  purchases  being  included  in  the  heading  of  the 
column. 

We  suggest  the  discontinuance  of  the  present  practice  of 
entering  upon  the  City  Librarian's  books  invoices  that  are  paid 
by  warrants  issued  from  the  Department  for  which  the  pur- 
chases were  made,  thus  recording  on  his  books  only  those 
invoices  which  are  chargeable  against  his  appropriation. 

These  suggestions  are  intended  to  provide  for  recording 
transactions  until  such  time  as  our  recommendations  relative 
to  a  General  Purchasing  Agent  are  adopted. 

A  Revenue  Record  Book  providing  for  the  distribution  of 
the  revenue  should  be  installed  in  the  Department. 


30 


s  J 


i 


)       '^1 


COMMISSIONER  OF  HEALTH 

While  our  instructions  did  not  authorize  us  to  make  an  audit 
of  the  accounts  of  this  Department,  we  have  made  a  cursory 
examination  of  the  methods  therein,  for  the  purpose  of  sug- 
gesting a  uniform  system  of  accounting  for  the  City. 

We  suggest  the  installation  of  a  Voucher  Record  Book  to 
cover  the  general  expenditures  of  the  Department.  Subsidiary 
books  can  be  used  to  make  further  analysis  of  the  expenditures, 
such  books  being  subject  to  control  by  the  Voucher  Record 
Book. 

The  Revenue  of  the  Department  is  not  at  present  under 
proper  control,  and  some  changes  should  be  adopted.  There 
should  be  installed  a  Revenue  Record  Book,  so  arranged  as  to 
give  the  sources  of  the  Revenue,  and  so  kept  as  to  show,  at  all 
times,  the  total  Departmental  Revenue.  Such  further  distribu- 
tion of  revenue  as  may  be  desired  can  be  provided  for  by  sub- 
sidiary books,  controlled  by  the  Revenue  Record  Book. 


COMMISSIONER  OF  ^TRFFT  CI 


I  I 


\  I 


G 


The  use  of  a  Ledger  in  this  Department  can  be  discon- 
tinued and  the  use  of  a  Voucher  Record  Book,  adapted  to  the 
needs  of  the  Department,  substituted. 

A  large  proportion  of  the  expenditures  of  the  Department 
is  made  for  wages.  The  method  used  and  the  precautions  taken 
relative  to  disbursements  of  this  nature  are  good ;  the  records 
of  the  Department  will  be  more  comprehensively  shown  through 
the  installation  of  the  Voucher  Record  Book. 

We  would  suggest  that  amounts  paid  out  of  the  Emergency 
Fund  be  charged  to  the  account  for  which  the  expenditure  is 
made.  To  that  end  a  transfer  from  the  Emergency  Fund  to  the 
account  affected  should  be  made  and  properly  recorded  and 
notice  of  the  same  should  be  sent  to  the  Comptroller. 

Notice  should  be  sent  to  the  Comptroller,  upon  blanks,  of  all 
bills  rendered  for  services  performed  for  private  parties  or 
contractors.     The  sale  of  street  dirt  should  also  be  regularly 

31 


reported    to   the    Comptroller   that    he    may    require    a    strict 
accounting  for  the  moneys  to  be  turned  in  to  the  City  Register. 
A  Record  Revenue  Book  should  be  installed  and  so  arranged 
as  to  show  the  sources  of  all  revenue. 


COMMISSIONERS  OF  FINANCE 

The  transactions  of  the  Commissioners  of  Finance  are  not 
now  recorded  on  the  books  of  the  Comptroller's  Department 
with  sufficient  detail.  In  our  o])inion,  this  is  a  weakness  in 
the  general  system  of  accounts  which  should  be  remedied.  We 
would  suggest  that  such  accounts  be  opened  on  the  General 
Ledger  in  the  Comptroller's  Department,  as  will  show  the 
aggregate  transactions,  which  have  been  recorded  upon  the 
books  of  the  Commissioners.  The  Clerk  of  the  Commissioners 
should  report  all  such  transactions  to  the  Comptroller. 

The  books  and  records  of  the  commissioners  are  not  suited 
to  the  needs  of  the  Department.  We  recommend  the  discon- 
tinuance of  the  present  form  of  Journal,  the  abolition  of  the 
practice  of  journalizing  all  cash  transactions,  the  installation 
of  a  Cash  Book,  arranged  so  that  postings  need  be  made  but 
once  each  month,  and  the  adoption  of  a  Sinking  Fund  Record 
Book,  for  recording  the  Stock  held  in  each  fund,  and  from 
which  the  Annual  Report  of  the  Commissioners,  relating  to 
these  matters,  can  be  readily  made. 


C(  r !  \fTSSIONERS  FOR  OPENING  STREETS 

The  Voucher  Record  Book,  at  present  in  use  in  this  Depart- 
ment, needs  only  slight  modification  to  conform  to  the  general 
Voucher  Record  Book  suggested  by  us.  A  general  distribution 
of  expenditures  will  be  shown  on  this  book,  further  analysis 
being  made  in  a  subsidiary  book,  kept  in  control  by  the  book  of 
original  entry. 

Some  of  the  bills  incurred  in  the  opening  and  closing  of 
streets  by  condemnation  (principally  advertising  bills)  are  ren- 
dered to  and  approved  by  this  Department.    Such  bills  could  be 


32 


approved  for  payment  by  this  Department,  if  necessary,  though 
it  seems  that  to  enter  them  upon  their  books  results  only  in 
duplication  of  work,  since  they  are  not  provided  for  by  appro- 
priations for  this  Department.  Assessments  levied  for  Opening 
and  Condemning  Streets  should  be  reported  to  the  City  Comp- 
troller, in  order  that  control  may  be  established  over  the  amount 
to  be  collected  by  the  City  Collector. 

Installation  of  a  Revenue  Record  Book  will  eliminate  the 
present  system  of  recording  sales  of  old  material,  and  furnish 
a  better  and  more  accessible  record  of  revenue  received  and 
accrued. 


DEPARTMENT  OF  LEGISLATIVE  REFERENCE 

A  Voucher  Record  Book,  providing  for  a  detailed  distribution 
of  salaries  and  expenses,  would  be  a  great  improvement  over 
the  present  ledger,  furnishing  as  it  does,  only  a  limited  amount 
of  information. 

The  present  books  show  the  amount  of  Expenditures  which, 
for  the  purposes  of  a  yearly  report,  must  be  analyzed.  The 
present  method  will  show  the  result  of  such  analysis  at  all 
times,  without  further  effort  than  the  proper  entry  and  distribu- 
tion of  all  invoices. 


ELECTRICAL  COMMISSION 

We  have  found  the  records  of  this  Department  to  be  accu- 
rately and  neatly  kept.  We  recommend  the  use  of  a  Voucher 
Record  Book  and  a  Revenue  Record  Book. 

The  Voucher  Record  Book  should  be  so  arranged  as  to  give 
in  detail  all  information  now  contained  in  the  two  Cash  Books, 
and  to  admit  of  a  separate  and  distinct  accounting  for  expendi- 
tures made  from  appropriations  from  the  General  Fund  and 
expenditures  made  out  of  the  appropriations  from  the  Conduit 
Loan.  Further  distribution  of  the  expenditures,  for  the  pur- 
pose of  arriving  at  the  cost  of  construction  and  maintenance, 
can  be  continued  in  the  present  form  or  in  modified   form, 

33 


t 


though    such    distribution    should    be    under    control    of    the 
Voucher  Record  Book. 

The  Revenue  Record  Book  should  embody  all  revenue  of  the 
Department,  whether  credits  to  Construction  Expenses  or 
Rentals  from  Conduit  space,  and  should  be  so  arranged  as  to 
show  both  receipts  and  accruals. 

Information  relative  to  the  rental  of  duct  space  is  at  present 
carefully  recorded  in  separate  books.  This  manner  of  keeping 
such  information  is  desirable  and  should  be  continued.  The 
proposed  form  of  Revenue  Record  Book  would  provide  for  a 
control  over  all  such  items. 


gross  amount  of  receipts  should  be  reported  to  the  Bath  Com- 
missioners, and  should  be  deposited  in  gross  in  the  City  Treas- 
ury as  Revenue  of  the  Department. 

All  records  of  expenditures  should  be  kept  in  the  proposed 
Voucher  Record  Book,  arranged  in  such  a  manner  as  to  give 
more  complete  information  than  is  now  shown  on  the  present 
Receipt  and  Disbursement  Book.  The  Revenue  Record  Book 
will  give  a  full  record  of  all  Revenue  of  the  Department  classi- 
fied acording  to  nature  and  source.  The  Revenue  should  be 
controlled  through  the  use  of  forms  to  be  submitted  to  the 
Comptroller's  Department. 


FREE  PUBLIC  BATH  COMMISSION 

The  books  and  records  kept  by  this  Department,  during  the 
earlier  portion  of  time  covered  by  our  examination,  were  very 
crude.  This  state  of  affairs  was  mainly  due  to  the  fact  that  the 
Department  was  new.  There  has  been  a  general  improvement 
in  tlie  manner  of  accounting  for  receipts  and  disbursements, 
but  these  methods  are  still  inadequate  to  meet  the  requirements 
in  a  satisfactory  manner. 

It  would  seem  necessary,  because  of  conditions  peculiar  to 
this  Department,  that  small  bills  for  services,  etc.,  be  paid  at 
the  several  Bath  Houses  at  the  time  such  service  is  performed. 
Heretofore,  the  keeper  of  the  Bath  House  has  been  permitted 
to  make  small  payments  of  that  nature  out  of  the  receipts  for 
the  day  or  week,  making  a  report  to  the  Department  of  the 
nature  of  the  expenditure,  and  submitting  vouchers  covering 
such  expenditures.  We  suggest  that  each  Bath  House  Keeper 
be  allowed  a  small  petty  cash  fund  sufficient  for  his  require- 
ments, and  that  all  petty  expenditures  be  made  from  this 
fund,  which  will  be  replenished  to  the  extent  of  his  expendi- 
tures, as  shown  by  receipted  vouchers,  upon  a  Comptroller's 
Disbursement  Warrant.  The  object  of  this  plan  is  to  keep  a 
separate  account  for  all  receipts  and  expenditures.  In  other 
words,  all  expenditures  should  be  made  upon  Warrants  drawn 
and   passed   through   the   Comptroller's   Department,   and   the 

34 


HARBOR  BOARD 

The  general  distribution  of  expenditures  made  through  this 
Department  should  be  shown  in  Voucher  Record  Books,  which 
in  form,  will  not  differ  greatly  from  the  books  of  record  now  in 
use.  As  a  part  of  the  expenditures  are  made  from  appropria- 
tions set  aside  from  the  Burnt  District  Improvement  Loan,  it 
would  be  well  to  record  them  separately  (as  is  now  done). 
For  that  purpose,  two  books  of  record  for  expenditures  should 
be  used,  viz:  ''Voucher  Record  Book— Harbor  Board"  and 
"Voucher  Record  Book— Burnt  District  Improvement  Loan." 

A  record  of  the  Revenue  now  kept  on  the  unruled  pages  of 
the  Ledger,  would  be  more  systematically  accounted  for  by  a 
Revenue  Record  Book,  arranged  to  show  the  several  sources 
from  which  Revenue  is  derived. 

If  further  distribution  of  expenditures  is  desired  for  the 
information  of  the  Department,  it  can  be  made  in  subsidiary 
books,  kept  in  proper  control  by  the  Voucher  Record  Book. 


INSPECTOR  OF  BUILDINGS 

The  use  of  the  General  Ledger  and  Voucher  Stub  Books 
will  be  unnecessary  when  a  suitably  prepared  Voucher  Record 
Book  is  installed.    The  purpose  for  which  the  so-called  'Indi- 

35 


vidual  Ledger"  is  now  used  (the  distribution  of  items  of 
expenditures)  can  be  carried  out  in  a  subsidiary  book  conform- 
ing to  the  general  i)lan  outUned  in  our  remarks  and  suggestions 
relating  to  the  several  Departments.  This  subsidiary  book 
should  be  under  control  of,  and  in  agreement  with,  the  records 
on  the  X'oucher  Record  Book. 

Durino-  the  period  covered  bv  our  examination,  we  found  a 
number  "of  charges  on  the  books  of  this  Department,  which 
were  not  covered  bv  invoices  or  warrants  in  the  Department. 
These   items   were   charges   against   appropriations   made    for 
lots  and  buildings  for  new  Schools  or  Engine  Houses,  etc.,  and 
in  the  majoritv  of  cases,  were  found  to  be  for  the  purchase  of 
the  lots,  examination  of  titles,  recording  of  deeds,  etc.      ihe 
warrants  covering  such  expenditures  were  properly  approved 
and  passed  through  the  Comptroller's  Office.     The  record  of 
these  charges  was  placed  upon  the  books  of  the  Department  of 
Inspector  of  Buildings   upon   information   received   from   the 
Comptroller's  Office  at  the  time  of  checking  up  the  accounts. 
Such  appropriations  were  presumably  charged  to  this  Depart- 
ment because  of  the  fact  that  the  construction  work  was  under 
the  supervision  of  the  Inspector  of  Buildings.    For  the  purpose 
of    uniformity,    and   the   grouping   of   expenditures   that    are 
closely    allied',    and    the    better    accounting    for    all    moneys 
expended  for  specific  purposes,  we  are  of  the  opinion  that  pro- 
vision should  be  made  whereby  all  appropriations  made   for 
Schools    for  the  Fire  Department,  etc.,  for  whatever  purpose, 
should  be  charged  against  the  Board  of  School  Commissioners, 
the  Board  of  Fire  Commissioners,  etc.,  and  all  warrants  for 
such  expenditures  should  be  drawn  and  finally  approved  by  the 
Department   for   which   such   appropriation   is   made.      If   the 
Inspector  of  Buildings  has  charge  of  the  construction  work  on 
new  buildings,  it  would  be  necessary  to  have  the  bills  or  esti- 
mates passed  upon  first  by  his  Department,  to  be  forwarded, 
for   final   approval   and   payment,   to   the    Department   whose 
appropriation  is  affected  thereby.     In  short,  all  bills,  by  whom- 
soever contracted,  should  be  sent  for  final  approval  and  for 
payment  to  the  Department  held  accountable  for  the  disburse- 
ment of  the  funds. 


36 


Since  the  new  building  code  provisions  became  effective; 
revenue  from  this  Department  has  been  small,  and  could  be 
readily  and  comprehensively  shown  on  the  proposed  Revenue 

Record  Book. 

A  record  should  be  kept  of  Public  Franchises  and  Elinor 
Privileges  issued  by  this  Department,  and  notification  sent  to 
the  Comptroller.  If  our  recommendations  regarding  the  col- 
lections covering  these  Public  Franchises  and  Minor  Privileges 
are  adopted,  notice  should  be  sent  upon  blanks  provided  for  that 
purpose  to  the  Comptroller  to  maintain  control  over  the  receipts 
from  same  as  reported  to  the  Comptroller  by  the  Collector  of 
Water  Rents  and  Licenses. 


LAW  DEPARTMENT 

The  accounts  that  have  been  kept  in  this  Department  are  in 
the  nature  of  memoranda,  and  they  furnish  little  information 
as  to  expenditures.    No  records  of  receipts  have  been  kept. 

A  Voucher  Record  Book  and  a  Revenue  Record  Book  should 
be  installed  for  the  use  of  the  Department,  and  not  only  should 
the  revenue  be  properly  recorded  upon  departmental  books,  but 
complete  control  over  the  same  should  be  exercised  in  a  manner 
conforming  to  our  general  suggestions  covering  this  subject. 

No  record  is  kept  of  salary  disbursements,  as  the  employees 
of  this  Department  are  paid  under  the  General  Pay  Roll  made 
up  in  the  Comptroller's  Department. 


MARKET  MASTER 

As  suggested  in  our  remarks  relating  to  the  Comptroller's 
Department,  the  supervision  of  the  accounts,  the  receipts  of 
moneys,  and  other  duties  devolving  upon  the  Market  Master, 
should  be  placed  under  the  direction  of  some  other  City  Depart- 
ment. Market  Revenue  is  most  closely  allied  to  the  Revenue 
handled  by  the  Collector  of  Water  Rents  and  Licenses,  and  we 
would  suggest  that  Department  as  the  most  appropriate  to 
receive  and  account  for  revenue  from  Markets. 

37 


i 


As  is  evidenced  by  the  results  of  our  examination  of  the 
Market  Master's  records,  there  is  need  of  a  proper  control  over 
the  Revenue  from  Markets.  Naturally,  a  more  careful 
accounting  is  now  made  of  such  Revenue,  since  'rregular>t,es 
were  found  in  this  Department,  though  much  is  still  to  be 
desired  in  the  way  of  effecting  efficient  safeguards. 

Licenses  should  be  issued  by  a  properly  authorized  person 
in  the  office  of  the  Collector  of  Water  Rents  and  Licenses,  in 
a  manner  similar  to  that  in  which  other  licenses  are  issued, 
though,  in  the  case  of  the  Markets,  additional  checks  could  be 
had  through  the  proper  handling  of  the  applications  made  to 
the  Assistant  :Market  Masters. 

Rentals  to  be  received  should  be  under  the  close  supervision 

and  control  of  the  Collector  of  Water  Rents  and  Licenses,  die 

Assistant  Market  Masters  making  all  such  collections. 

The  present  method  of  accounting  for  Per  Diem  receipts 

appears  to  be  practical. 

The  Internal  Auditors  from  the  Comptroller's  Department 

should  visit  the  markets  periodically  for  the  purpose  ot  ven- 

fying  receipts. 

MAYORALTY 

No  record  is  kept  for  disbursements  for  salaries,  as  those 
payments  are  included  in  the  General  Pay  Roll  from  the 
Comptroller's  Department. 

The  use  of  a  Voucher  Record  P.ook  is  recommended,  and  it 
should  be  so  arranged  as  to  show  readily  an  analysis  of  the 
amounts  expended  for  the  Department. 

Thouo-h  the  Revenue  is  small,  and  in  the  nature  of  refunds, 
it  would  be  well,  for  the  sake  of  uniformity,  to  have  a  Revenue 
Record  Book,  in  which  all  such  amounts  should  be  entered,  and 
distributed  to  the  proper  accounts. 

An  Employee's  Bond  Register  should  be  kept  in  which 
should  be  recorded  all  bonds  given  by  the  City  Officials  for 
the  faithful  performance  of  their  duties. 


i 

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SEWERAGE  COMMISSION 

The  books  of  this  Commission  are  being  regularly  audited 
by  public  accountants,  and  we  were  not  authorized  to  audit 
them.  In  our  opinion  these  books  should  be  brought  under  the 
City's  general  accounting  system,  and  subject  to  the  same 
periodical  examination  by  the  Internal  Auditors  of  the  Comp- 
troller's Department  as  has  been  suggested  for  the  other  De- 
partments. 

A  Voucher  Record  Book,  suggested  for  use  in  Departments 
having  a  somewhat  similar  class  and  volume  of  expenditures, 
can  be  used  to  advantage  in  this  Department.  Such  other 
records  as  may  be  required  can  be  installed,  in  harmony  with 
the  general  system  outlined  by  us. 

SUPERINTENDENT  OF  LAMPS  AND  LIGHTING 

The  accounting  methods  in  this  Department  afford  a  thor- 
ough and  satisfactory  check  upon  all  items  of  Revenue  and  Dis- 
bursement. Careful  record  is  made  of  all  expenses  incurred, 
it  is  evident  that  all  bills  are  closely  scrutinized,  and  the  trans- 
actions are  fully  recorded  upon  the  books,  which  are  carefully 
and  neatly  kept.  Detailed  information  concerning  the  work 
or  the  records  of  the  Department  is  accessible  and  easy  of  inter- 
pretation. 

The  Book  of  Record,  covering  Expenditures  for  this  De- 
partment, conforms  so  closely  to  the  general  form  of  Voucher 
Record  Book,  recommended  for  use  in  the  several  Departments, 
that  only  slight  changes  need  be  suggested. 

The  use  of  the  present  Cash  Book  can  be  eliminated,  the 
revenue  of  the  Department  being  shown  with  such  distribution 
as  may  be  required  upon  the  Revenue  Record  Book  suggested 
by  us. 

SUPERINTENDENT  OF  t^!  BLIC  BUILDINGS 

Some  unnecessary  duplication  of  work  can  be  eliminated  in 
this  Department  through  the  installation  of  an  appropriately 
ruled  and  arranged  Voucher  Record  Book.     A  further  analysis 


38 


39 


of  the  expenditures  than  can  be  easily  shown  on  this  book  seems 
to  be  desirable,  and,  to  that  end,  a  subsidiary  book,  controlled 
by  the  Voucher  Record  Book  can  be  advantageously  used. 

Proper  control  of  the  Revenue  of  the  Department  can  be 
obtained  in  the  manner  outlined  in  our  general  remarks  cover- 
ing this  subject,  and  distribution  of  the  Revenue  can  be  made 
upon  a  Revenue  Record  Book  arranged  for  that  purpose. 

SUPERVISORS  OF  CITY  CHARITIES 

There  has  been,  in  this  Department,  no  attempt  to  keep  a 
complete  record  of  the  transactions  of  Revenue  and  Expense; 
rather  have  their  efforts  been  directed  toward  making  memo- 
randum entries  for  the  information  of  the  office,  and  in  the 
case  of  expenditures,  for  keeping  within  the  amounts  appro- 
priated. Not  all  bills  have  been  rendered  in  duplicate,  nor 
have  the  duplicates,  except  in  the  case  of  some  hospitals  and 
the  dispensaries,  been  preserved  as  office  records,  only  those 
being  retained  that  might  be  of  use  for  reference. 

We  suggest  that  a  Voucher  Record  Book  be  installed,  in 
which  will  be  recorded,  and  properly  distributed,  all  disburse- 
ments made  for  the  Department. 

The  Revenue  of  this  Department  is  derived  principally  from 
reimbursements  for  board  of  and  medical  attendance  to  patients 
in  the  several  institutions  under  the  supervision  of  the  Depart- 
ment. During  the  period  covered  by  our  examination  the 
amount  of  such  revenue  was  not  under  control. 

Records  of  all  Revenue  of  the  Department  should  be  made 
upon  a  Revenue  Record  Book  prepared  with  a  view  to  its  par- 
ticular needs.  These  records,  in  connection  with  the  installa- 
tion and  proper  handling  of  bills  and  forms  and  the  necessary 
notification  to  the  Comptroller,  should  establish  complete  con- 
trol over  all  Revenue. 


TOPOGRA 


1 1, 


SURVEY 


A  more  comprehensive  view  of  the  record  of  both  Expen- 
ditures and  Revenue  will  be  had  through  the  installation  of  a 
suitably  prepared  Voucher  Record  Book  and  Revenue  Record 


.1 


/    ; 


,1) 


Book.  All  records,  at  the  present  time,  are  in  the  nature  of 
memoranda,  and  do  not  readily  furnish  the  information  desired. 
The  proposed  method  will  overcome  that  objection,  while,  if 
greater  detail  is  desired  in  the  Department,  subsidiary  books 
can  be  devised  to  meet  such  requirements. 

WATER  ENGINEER 

A  Voucher  Record  Book  should  be  installed  in  this  Depart- 
ment, which  will  combine  the  uses  of  the  Purchase  Journal, 
Disbursement  Cash  Book  and  Accounts  Payable  Cards. 

This  Voucher  Record  Book  should  be  so  arranged  as  to  pro- 
vide for  the  several  accounts  for  which  general  appropriations 
are  made  and  also  for  the  accounts  for  which  appropriations 
are  made  from  Loans.  Further  distribution  of  these  accounts 
can  be  made  in  subsidiary  books. 

The  information  now  obtainable  from  the  Warrant  Book, 
Appropriation  Journal  and  Appropriation  Ledger  will  be  sup- 
plied b}'  the  Voucher  Record  Book. 

As  we  have  suggested  that  all  Assets  and  Liabilities  of  the 
City  be  shown  upon  the  Comptroller's  General  Ledger,  it  will 
no  longer  be  necessary  to  keep  the  information  in  this  Depart- 
ment, and  the  use  of  the  General  Ledger  can  be  eliminated.  All 
disbursements  should  be  so  reported  to  the  Comptroller  as  to 
give  him  full  information  concerning  the  charge,  whether  it 
be  an  item  of  expense,  or  an  item  to  be  placed  upon  the  books 
as  an  Asset  of  the  City. 

We  recommend  that  a  Revenue  Record  Book  be  installed, 
and  that  all  departmental  revenue  be  recorded  therein,  showing 
its  source.  The  Comptroller  should  be  notified  of  all  Revenue 
as  it  accrues,  in  order  that  he  may  make  proper  entries  thereof. 
As  outlined  in  our  general  recommendations,  it  should  be 
required  that  payment  be  made  direct  to  the  City  Register  by 
the  party  from  whom  it  is  due,  and  the  Comptroller  promptly 
advised  of  such  payments. 


40 


41 


The  method  of  handhng  material  and  suppHes  in  this  De- 
partment is  hicrhlv  commendable,  as  is  evidenced  by  the  slight 
adjustments  necessary  between  the  Department  records  and  the 
balance  of  stores  on  hand  according  to  a  physical  mventory 
taken  at  the  end  of  the  fiscal  year. 

We  suggest  that  items  now  included  in  the  records  of  this 
Department  as  revenue,  but  which  are  received  by  the  Collector 
of  Water  Rents  and  Licenses,  be  regarded  as  revenue  of  the 
latter  Department. 

The  Comptroller  will  be  advised  by  the  W^ater  Engineer's 
Department  of  the  charges  made,  and  by  the  Collector  of  Water 
Rents  and  Licenses  of  the  amounts  received,  and  will  thus  have 
separate  and  independent  sources  of  information  by  which 
control  of  the  Revenue  will  be  maintained. 

DEPARTMENTS  UNDER  STATE  CONTROL 

These  Departments  include  the  Board  of  Police  Commis- 
sioners, Board  of  Police  Examiners,  Coroners,  Courts,  House 
of  Correction,  Liquor  License  Commission  and  Supervisors  of 
Elections. 

Control  Accounts  cannot  be  established  over  these  State 
Departments,  because  the  City  has  no  authority  to  regulate  the 
manner  in  which  the  State  shall  keep  its  accounts  nor  the  form 
in  which  it  shall  render  an  accounting  to  the  City. 

The  Revenue  and  Expense  accounts  of  these  Departments 
will  of  necessity  be  kept  on  the  Comptroller's  books,  as  at 
present.  The  Comptroller  requires  proper  Pay  Rolls  and  other 
vouchers  covering  all  expenditures. 

These  Departments  should  be  requested  to  furnish  complete 
information  concerning  items  of  revenue,  and  it  should  be  a 
part  of  the  duties  of  the  Internal  Auditors  to  verify  these 
receipts  as  far  as  permitted  by  the  State  to  do  so. 

We  desire  to  thank  the  Heads  of  the  Departments,  and  all 
with  whom  we  came  in  contact  during  the  progress  of  the 

42 


examination,  for  the  courteous  manner  in  which  w^e  were  sup- 
plied with  all  data  necessary  to  facilitate  our  work. 

Respectfully  submitted, 


THE  AMERICAN  AUDIT  COMPANY, 

Bv  R.  M.  COULBOURN, 

Resident  Manager. 


We  concur : 


Robert  Atkins,  C.P.A. 
Thos.  p.  Howard,  C.P.A. 


Approved : 


F.  W.  Lafrentz,  C.P.A.,  President. 


Attest : 


A.  F.  LafrEntz,  Asst.  Secretary. 


(Certified  Public  Accountants  under 
the  laws  of  the  State  of  New  York.) 


43 


THE  Am'MiCXS   AIDIT   ComW'^Y 


KEYSER  BUILDING 


BALTIMORE,  MD.,  November  1,  1909 


To  the  Honorable  Mayor  and  City  Council 

of  the  City  of  Baltimore,  Maryland. 

Gentlemen  : 

We  have  audited  the  books  of  the  City  Comptroller's  De- 
partment for  the  period  from  January  ist,  1907,  to  June  30th, 
1909,  and  submit  herewith  our  report,  including  Exhibits  and 
Schedules  as  follows: 


Exhibits: 
"A" 

"B" 


"C" 


Comparative  Statement  of  Assets  and  Liabilities 
as  at  January  ist,  1907,  December  31st,  1907, 
and  December  31st,  1908. 

Summary  of  Receipts  and  Expenditures  of  the 
City,  grouped  according  to  functions  and  classi- 
fied as  "ordinary"  and  "extraordinary"  for  the 
fiscal  years,  1907,  1908  and  the  six  months 
ended  June  30th,  1909. 

Statement  of  Receipts  by  Departments,  grouped 
according  to  functions,  for  the  fiscal  year  1907. 


"C-i"  Statement  of  Receipts  by  Departments,  grouped 
according  to  functions,  for  the  fiscal  year  1908. 

**C-2"  Statement  of  Receipts  by  Departments,  grouped 
according  to  functions,  for  the  six  months 
ended  June  30th,  1909. 

"D"  Statement  of  Expenditures  by  Departments, 
grouped  according  to  functions,  for  the  fiscal 
year  1907. 

44 


^ 


Exhibits: 

"D-i"  Statement  of  Expenditures  by  Departments, 
grouped  according  to  functions,  for  the  fiscal 
year  1908. 

"D-2"  Statement  of  Expenditures  by  Departments, 
grouped  according  to  functions,  for  the  six 
months  ended  June  30th,  1909. 

Trial  Balance  of  the  Comptroller's  Ledger  as  at 
January  ist,  1907. 

Trial  Balance  of  the  Comptroller's  Ledger  as  at 
June  30th,  1909. 

City  Collector:     Summary  of  Taxes  in  Arrears 
as  at  June  30th,  1909. 


"E" 
"G" 


Schedules. 
I 


5 
6 


8 


10 


II 


Water  Department :  Cost  of  Real  Estate  and 
Construction  as  at  December  31st,  1908. 

Wharf  Property  owned  by  the  City  as  at  Decem- 
ber 31st,  1908. 

Cost  of  Sundry  City  Properties,  including  City 
Hall,  Court  House,  Jail,  Bay  View  Asylum, 
etc.,  as  at  December  31st,  1908. 

School  Real  Property  and  Buildings  owned  by 
the  City  as  at  December  31st,  1908. 

Fire  Department  Real  Property  and  Buildings 
owned  by  the  City  as  at  December  31st,  1908. 

Parks  and  Squares  owned  by  the  City  as  at 
December  31st,  1908. 

Police  Station  Houses:  Real  Property  and 
Buildings  owned  by  the  City  as  at  December 
31st,    1908. 

Markets :  Real  Property  and  Structures  owned 
by  the  City  as  at  December  31st,  1908. 

City  Property  under  control  of  the  Commis- 
sioners of  Finance  as  at  December  31st,  1908. 

Free  Public  Baths :  Real  Estate  and  Buildings 
owned  by  the  City  as  at  December  31st,  1908. 

Enoch  Pratt  Free  Libraries :  Real  Property  and 
Buildings  owned  by  the  City  as  at  December 
31st,    1908. 

45 


It  will  be  noted  that  we  have  not  set  up  a  statement  of  Assets 
and  Liabilities  as  of  June  30th,  1909,  the  end  of  the  period  of 
our  examination,  because  that  is  not  the  end  of  the  fiscal  year 
of  the  City ;  but  we  have  prepared  and  submit  a  Trial  Balance 
of  the  Comptroller's  Ledger,  which  shows  the  various  appro- 
priations, together  with  the  amount  of  Recepits  and  Expendi- 
tures of  cash  and  the  balance,  debit  or  credit,  at  June  30th, 
1909,  the  expenditures  being  based  chiefly  upon  cash  transac- 
tions. 

In  the  course  of  our  investigation,  we  examined  thoroughly 
the  Receiving  Warrants  issued  by  the  City  Comptroller  cover- 
ing Departmental  receipts,  as  also  the  Disbursing  Warrants 
issued  by  him  and  paid  by  the  Register  during  the  period  under 
review,  and  found  complete  harmony  between  the  books  and 
records  of  the  office  of  the  Comptroller  and  those  of  the  Regis- 
ter, as  well  as  with  the  returns  made  by  the  Departments.  The 
work  of  this  Department  is  very  voluminous,  and  has  been 
performed  with  commendable  care  and  accuracy. 

The  Exhibits  and  Schedule  herein  set  forth  are  self-explana- 
tory; but  we  desire  to  call  your  attention  to  the  fact  that  the 
statements  of  Assets  and  Liabilities  are  based  partly  upon 
information  taken  from  books  of  account  and  partly  upon 
information  gathered  from  reports  and  data  not  incorporated 
in  books  of  account. 

As  will  be  noticed,  we  have  augmented  the  statements  here- 
tofore rendered  by  the  officials  of  the  City  to  some  extent,  yet 
those  presented  here  are  incomplete  owing  to  the  absence  of 
reliable  information  concerning  other  known  assets  belonging 
to  the  City. 

In  conclusion,  we  desire  to  say  that  we  have  now  completed 

our  audit,   having   examined   and   reported   on   the    following 

departments : 

Commissioners  of  Finance 
City  Register's  Office 
Topographical  Survey- 
City  Librarian 

Superintendent  of  Lamps  and  Lighting 
Superintendent  of  Public  Buildings 
Board  of  Fire  Commissioners 

46 


1^ 


>■♦- 


'r 


Collector  of  Water  Rents  and  Licenses 

Inspector  of  Buildings 

Harbor  Board 

Commissioner  of  Street  Cleaning 

Department  of  Legislative  Reference 

Mayoralty 

Commissioners  for  Opening  Streets 

Free  Public  Bath  Commission 

Electrical  Commission 

Board  of  Park  Commissioners 

Law  Department 

Board  of  School  Commissioners 

Water  Engineer 

Supervisors  of  City  Charities 

Market  Master 

City  Collector — Appeal  Tax  Court 

Jail  Board 

City  Engineer 

Bay  View  Asylum 

Comptroller's  Office 

The  books  of  the  Health  Department  and  Sewerage  Com- 
mission were  examined  by  other  accountants,  under  proper 
authority,  and  our  instructions  were  not  to  go  into  the  details 
of  them.  As  to  those  Departments  coming  under  control  of 
the    State,    namely, 

Courts 

Liquor  License  Commission 

Supervisors  of  Elections 

House  of  Correction 

Board  of  Police  Examiners 

Board  of  Police  Commissioners 

Coroners 

we  were  instructed  not  to  investigate  them,  as  it  was  consid- 
ered that  the  City  had  no  authority  to  order  such  examina- 
tion ;  but  we  verified  and  carefully  scrutinized  the  expenditures 
by  the  City  on  their  account. 

We  did  not  verify  the  amounts  appearing  upon  the  books  of 
the  several  Departments  as  due  the  City,  beyond  checking  out 
the  items  constituting  such  amounts,  as,  in  our  judgment, 
further  verification  would  be  unwarranted  because  of  the 
great  expense  entailed. 

47 


As  already  stated  in  our  specific  report  on  the  Park  Depart- 
ment, we  have  not  verified  the  gross  earnings  of  the  Street 
Railways,   upon   which   are   based   the   "Street   Railway   Park 
Taxes,"  no  authority  having  been  given  us  to  do  so. 
Corrections  have  been  made  of  all  errors  found. 
Barring   the   specific   instances   of  wrongdoing   resulting   in 
the  shortages  reported  by  us,  all  funds  received  for  corpomte 
purposes  have  been   satisfactorily  accounted   for.     As  to  the 
accounting  system,   it  will  be  seen   from  our  report  covering 
suggestions  in  relation  thereto  that  improvements  should  be 
made  therein.     It  is  evident  that  there  has  been  a  general  effort 
to  better  the  methods  of  accounting  in  the  various  Departments 
by  those  connected  therewith,  so  as  to  give  a  faithful  exhibit  of 
transactions.     Proper  vouchers  were  obtained  for  all  pavments. 
Our  efforts  to  get  at  the  truth  of  the  situation  have  been 
facilitated  by  all  those  with  whom  we  have  come  in  contact, 
and  it  has  made  our  u  ork  easier  and  less  expensive  to  the  City 
than  it  otherwise  would  have  been.     We  have  no  doubt  that 
the  suggestions  we  are  making  for  what  we  deem  to  be  a  better 
system  of  recording  the  transactions  of  the  City  will  be  wel- 
comed by  all  those  who  by  reason  of  their  emplovment  are 
charged  with  carrying  out  the  orders  of  the  properlv  consti- 
tuted authorities,  and  that  every  effort  will  be  made  by  them 
to  adopt  such  suggestions  as  may  be  found  to  be  serviceable 
by  those  to  whom  this  report  runs  and  who  are,  in  the  last 
analysis,  responsible  for  the  proper  conduct  of  the  business  of 
this  great  city. 

All  of  which  is  respectfully  submitted. 


« 


liil    AMERICAN  AUDIT  COMPANY, 

By  R.  M.  CouLBOURN, 


Approved : 

F.  W.  Lafrkntz,  President. 
Attest : 

Theo.  Cocheu,  Jr.,  Secretary, 

48 


Resident  Manacrer. 


?>> 


« 


American  audit  company, 

•  ••  Reoornncndations  relative  to  a 
general  system  of  accounting  for 
the  city  of  Baltimoro 


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